AT&T (NYSE: T) has reduced its stake in Mexico-based America Movil (NYSE: AMX) by 7.5 percent, raising $564 million by selling 540 million shares after the company launched a share buyback program.
In an SEC filing, AT&T said it sold the America Movil shares in the open market in May and early June.
Besides multi-billionaire Carlos Slim's family, AT&T is the second largest shareholder in America Movil.
"From time to time we rebalance our asset levels and raise cash for general corporate purposes," AT&T said in an e-mailed statement to Bloomberg. "We've historically owned about 9 percent of AMX. As a result of AMX's recent share repurchases and our sales, we will again hold an approximate 9 percent interest in AMX."
Having worked together since 1990 when AT&T's predecessor Southwestern Bell Corp. (SBC) was one of the backers in Slim's purchase of Mexico's telephone monopoly Telmex, the two telcos are hardly strangers.
America Movil has been the dominant player in the Mexican telecom, owning more than 70 percent of the Mexican mobile phone market and roughly 80 percent of the wireline business market. However, that stance could be challenged as new laws passed by the Mexican government will enable foreign investors to own larger stakes in the country's telcos.
- Bloomberg has this article
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